The Small Business Administration (SBA) and Treasury Department (TD) Announce Total Forgiveness for All PPP Loans of $50,000 or Less
There is NOW an easy loan forgiveness application for all Paycheck Protection Program (PPP) loans of $50,000 or less. This decision streamlines the PPP forgiveness process to provide financial and administrative relief to America’s smallest businesses. This decision will also allow lenders to process forgiveness applications far more swiftly.
SBA began approving PPP loan forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers on October 2, 2020. SBA will continue to process all PPP loan forgiveness applications in an expeditious manner.
PPP Loan Forgiveness Application Process
If you have a PPP loan of $50,000 or less, use these links to apply for loan forgiveness:
· Form 3508S (loan forgiveness application)
· Instructions for completing your loan forgiveness application
· Interim Final Rule on the simpler forgiveness process for loans of $50,000 or less
Get Your Loan Forgiveness Application in Soon!
Sole Proprietors and Partnerships with no employees should file the forgiveness application soon. Form 3508S has a misleading expiration date of 10/31/2020. The SBA has clarified this to say that borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from the loan’s origination, depending on the borrower’s agreement. However, the SBA also reminds borrowers that the loan payments are only deferred until 10 months after the last day of the borrowers loan forgiveness covered period.